Management-22509

Unit No-1
Introduction to Management Concept and
Managerial Skills.

(For MSBTE Diploma Engineering students)

Ravindra Nafade, Lecturer in Mechanical Engg,

Government Polytechnic, Nashik

 Course Outcome:
Use basic management principles to
execute the daily activities.

Written by

Ravindra Nafade, Lecturer in Mechanical Engg.

Government Polytechnic ,Nashik
Unit No.-1:

Introduction to Management Concept and Managerial Skills.

UO-3:

Explain the functions of Management

CONTENT

PART ONE

1. Functions of management

PART TWO

1. Types of Planning .

2. Steps in Planning.

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Objectives

(PART-2)

After this session you should be able to –

1. State the types of planning.

2. Explain the steps in planning.

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Planning

1.Planning
“Planning is deciding in advance what to do, how to do it, where to do it and who is to do it.
Planning bridges the gap from where we want to go. It makes possible for things to occur while
would not otherwise happen.” – Koontz and o’ Donnell.

Planning is deciding in advance

 What to do
 How to do
 When to do
 Who will do
 Where to do.

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 Types of Planning
Sr No Classification Criteria Types

1 Coverage of activity Corporate Planning

Functional Planning
2 Importance of contents Strategic Planning
Tactical/operational planning
3 Time period involved Long term Planning
Short term planning
4 Approach adopted Proactive Planning
Reactive planning
5 Degree of formalization Formal Planning
Informal planning

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Types of Planning
1. Coverage of activity
a) Corporate Planning
b) Functional Planning
2. Importance of contents
a) Strategic Planning
b) Tactical/operational
planning
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Types of Planning
Planning is done at corporate level.
Determine long term objectives as a whole and to generate plans to achieve
objectives.
It is derived from corporate planning.
Undertaken for each major function of the organization like production, marketing,
finance etc.
Strategic planning is a process in which the top management determines its vision , goals
and objectives.
long term policy (3 to 5 years)for the organization will be decided by taking in to account
all the external factors, strengths and weaknesses and risks etc.
Examples of strategic planning may be diversification of business into new lines, new
products, planned grown rate in sales etc
Tactical planning involves how the resources should be used to achieve the
goals. Generally carried out at lower level management.
It is an extension of strategic planning and done at various organizational units.
Tuesday, September 14,
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Types of Planning
Types of Planning 2
3. Time period involved
a) Long term Planning Strategic in nature and involves more than one year period and can extend to
15 to 20 years or so.
b) Short term Planning Usually covers one year.
 Short term plans are made with reference to long term plans because short
term plans contribute to long term plans.

4. Approach adopted
a) Proactive Planning Proactive planning involves designing suitable courses of action in anticipation
of likely changes of environment
Managers adopting proactive changes do not wait for environment to change,
but take action in advance of environmental changes . Ex: Emergency
management.

b)Reactive planning Reactive planning is the process whereby future action is dictated in response
to whatever comes from environment changes.
This type of planning is suitable in the environment which is fairly stable over a
long period of time.

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Types of Planning
Types of Planning 3
5. . Degree of formalization
a) Formal Planning This type of planning is rational, systematic, regular and well documented and
called formal planning .
It is a structured plan prepared by experts like engineers, economists at higher
level.
Based on results obtained from environment scan .
When environment shows some change, these experts analyses the
environment and suggest suitable measures to take the advantage of the
changing environment .

b) Informal Planning  Informal planning is undertaken generally by small organizations.

This planning process is based on manager's experience, intuitions rather than
based on systematic evaluation of environmental changes.
This planning process is part of manager's regular activity and is suitable for
small organisations.

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Steps in Planning
1) Establishing goals/objectives:
 Setting of the enterprise objectives based on the factors like mission of the organization, abilities
of the organization etc.
 Setting of objectives section wise or department wise at the lower level to get the clear cut
direction to the departments. Control process is very easy if the objectives are clearly defined .

2) Establishing planning premises:

 To view the conditions under which planning activities will be undertaken.

 Planning premises are planning assumptions or factors like the expected environmental factors,
pertinent facts and information relating to the future such as general economic conditions,
population trends, competitive behaviour etc.
 The planning premises can be classified as below:

(a) Internal and External premises. (b) Tangible and Intangible premises.
(c) Controllable and non-controllable premises .

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 Steps in Planning

3) Deciding the planning period:

Once the long term objectives and planning premises are decided, the next task is to decide the
period of the plan. Some plans are made for a year and in others it will be decades.

4) Identification of alternatives:
The next step in planning is identifying alternatives to achieve the objective through various actions.

5) Evaluation and selection of alternative:

After the alternatives are identified, the next step is to evaluate the alternatives according to the premises
and goals, and to select the best course of action with the help of quantitative techniques , operations
research and software packages available for evaluating alternatives.

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 Steps in Planning

6) Developing derivative/supportive plan

After the best plan is selected, various other plans are derived so as to support the main plan. These may
be plans for buying equipment, buying raw material etc. They are derivative plans /supportive plans
formulated to support the main plan.

7) Measuring and controlling the process:

Managers need to check the progress of their plans so that remedial action can be taken to make plan
work or change the plan if it is unrealistic. Hence process of controlling is a part of any plan .

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Summary

Types of planning:
1. Coverage of activity: Corporate and functional planning
2. Importance of contents: Strategic and tactical/operational planning
3. Time period involved: Long term and short term planning
4. Approach adopted: Proactive and reactive planning
5. Degree of formalization: Formal and Informal planning

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Review:
Steps in Planning:
1) Establishing goals/objectives : Setting of objectives/goals of company.

2) Establishing planning premises: View the conditions under which planning activities will be
undertaken.

3) Deciding the planning period: Decide the period of the plan.

4) Identification of alternatives: Identify the alternatives to achieve the objective .

5) Evaluation and selection of alternative: Evaluate the alternatives according to the premises and
goals, and to select the best one.

6) Developing derivative/supportive plan : After the best plan is selected, various other plans are derived.

7) Measuring and controlling the process: Monitor and check the process.

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 Thank You

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